August 29, 2011 – The most recent suburban Chicago real estate development to be hit with a foreclosure suit is Cornerstone in Evanston. Crain’s is reporting that even though developer Steven Lome cut prices more than once on the project, he still wasn’t able to sell enough units to pay off the construction loan. First Midwest Bank is suing to collect a balance of $4.7 million.

The original construction loan of $7 million was issued in 2007 and came due in October of 2009. It was extended twice, according to the article. Cornerstone consists of 15 suburban Chicago condos and four townhomes. The article states that just three condos were sold as of this March, while four more have recently been sold and two more have gone under contract. Of the townhomes, one is sold and the remaining three are being rented.

The prices for a three bedroom condo at Cornerstone currently run from about $324,900 on up to $549,000 for a larger 2,000 square foot condo on floor four of the building.

The article went on to say that buyers are being turned off rather than on by suburban median sales prices that have dipped 15.8% since July of 2010. Instead of looking for great deals, buyers are wary that prices will go even lower and aren’t willing to make a move right now.

Still, if you’re looking for reduced prices on a new or second home or even investment property, there are lots of Chicago foreclosures for sale right now.